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Vedanta, ArcelorMittal, NuMetal-JSW bid to takeover debt-laden Essar Steel

Essar Steel was among the initial 12 companies identified by the Reserve Bank of India (RBI) for insolvency proceedings

Press Trust of India  |  New Delhi 

Essar Steel
Essar Steel

Vedanta, and Numetal along with JSW on Monday submitted resolution plans for the debt-laden in the second round of bidding, sources close to the development said.

JSW has joined hands with the Mauritius-based investment vehicle Numetal for placing its bid.

Only two players, ArcelorMittal and Numetal, had submitted bids for on February 12 in the first round.

Both the bids, however, were rejected by the SBI-led consortium of creditors finding them ineligible under the IBC laws that debar related parties from bidding. Numetal, an SPV floated by Russian lender VTB Bank and Rewant Ruia had jointly placed the offer.

Founded by Shashi and Ravi Ruia, was referred to the National Company Law Tribunal last year after accumulating nearly Rs 500 billion in debts.

Essar Steel is an integrated flat steel producer. Its main production facility is in Gujarat. It has a nameplate crude steel capacity of 9.6 million tonnes per annum, although the current maximum achievable crude steel production level is 6.1 million tonnes per annum, due to a bottleneck in the steelmaking and casting process.

Essar Steel was among the initial 12 identified by the of India (RBI) for proceedings.

First Published: Mon, April 02 2018. 17:50 IST